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Ivan there are plenty of good pairs, just look in the materials sector back test for example, attached is a screen shot of a small handful i got from a back test of ASX stocks.

you can see my trade results on page 71 of this journal.

Do you have the ASX stock code list? I can see many pairs. yeah 3.0 stretch has very few trade signals. yes PT has been working great for me.

Closed 2 trades; Sold SFL @ 11.51 Covered VLCCF @ 14.75 Sold ZEUS @ 18.89 Covered SIM @ 4.95 Opened new trade; Long BPZ @ 4.30 Short PDC @ 5.08

Yes I can see that. I wasn't aware that they are paying in stock, not sure how that works with my short position yet, typically with dividends the stock price reflects the dividend been paid out, so the drop in the stock price should offset the dividend payable.

Looking at the ASX I think you will be able to find plenty of good pairs to trade. When backtesting, filter your pairs for above $300 average profit per trade, therefore your brokerage is well covered, but yes having low commissions is vital to any trading success, focus on good execution...

closed 1 trade; Sold SII @ 24.19 Covered DRQ @ 24.12 2 new trades; Long HP @ 22.31 Short UNT @ 26.45 Long WWW @ 17.18 Short NKE @ 47.20

Yes some pair traders do this, wait for reversion to start before entering, Ive always found that entering at the extreme's to offer the best risk vs reward profile, yes waiting for a reversal may have a higher win rate but at the expense of a lower win loss rate, your payoff is smaller. I...

entered wednesday Long TCO @ 18.77 Short SPG @ 42.99

Yes this is correct.

Yes Ive noticed this, probably something to do with increased volatility. Yes I look at the RSI chart with each signal, i like divergences also you can tell by looking at the RSI chart whether a pair is good to trade or not, i like a chart that looks like a heartbeat graph, regular and...

generally speaking yes, buts that's a subjective question because in periods of higher volatility the risk and reward both increase and you adjust your size accordingly, just as you increase your size in periods of low volatility, but yes higher volatile environments can present unique...

Exited one trade; Sold MGG @ 15.60 Covered TPP @ 24.08

Yes Ive heard of this theory aswell, the higher volatile stock producing the most returns, however my issue is that just because one stock may have a daily volatility of 3% and another stock has 2%, it doesn't mean that the move that the signal occurs on is from the higher volatile stock, the 2%...

No I don't think I got that trade on the print, was shortly before the close.

Any more than 200 pairs I think is too much, each pair gives roughly 10 signals per year, so 200 unique pairs gives you a possible 2000 trades per year which is plenty. So I would refine your lists by simply ranking them by correlation, just keep the top 100 or 200 correlated pairs, I prefer to...

What I did was enter all the stock codes from the industries with more than 10 stocks in them, backtested them and applied a filter to only show results above 70% avg correlation and avg profit per trade above $300, then i used the ratio chart in the backtester as I do with my entry signals to...

I don't think pair trading rely's on high volatility to be profitable, actually my pairs went askew with the sharp increase in volatility in early october however when volatility decreased they quickly snapped back. my charts tell me to long CIEN short GLW not the other way around as you...

Exited 2 trades; Sold ETP @ 34.93 Covered PAA @ 37.80 Sold ANV @ 5 Covered GRS @ 6.55 Opened new trade; Long ZEUS @ 15.87 Short SIM @ 4.60

Yes I only have pairs grouped by industry, so no need to check their business profiles. Yes 2.5k per side will be ok, if your paying $2 round trip, and avg profit per trade is 1.5% then your commission will be about 2.6% of your profits which is fine.